4.) Potato State Manufacturing is preparing its cash payments budget in the upcoming month. The following information pertains to the cash payments:

• a. Potato State Manufacturing pays for 70% of its direct materials purchases in the month of purchase and the remainder the following month. Last month's direct material purchases were $40,000, while First State Manufacturing anticipates $45,000 of direct material purchases this coming month.
• b. Direct labor for the upcoming month is budgeted to be $25,000 and will be paid at the end of the upcoming month.
• c. Overhead is estimated to be 150% of direct labor cost each month and is paid in the month in which it is incurred. This monthly estimate includes $8,000 of depreciation on the plant and equipment.
• d. Monthly operating expenses for next month are expected to be $27,500, which includes $1,500 of depreciation on office equipment and $2,000 of bad debt expense. These monthly operating expenses are paid during the month in which they are incurred.
• e. Potato State Manufacturing will be making an estimated tax payment of $6,000 next month.

Required:

Prepare a cash payments budget for the month.